Covalon Announces Major Sales Breakthrough – Wins Contracts with an
Estimated Value of $100 Million Over a Three-Year Period

Conference call scheduled for Tuesday May 8th
at 9am EDT to discuss the impact of this major transformative event

May 07, 2018 08:00 AM Eastern Daylight Time

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV;
OTCQX: CVALF), an advanced medical technologies company, has been
informed that it has won a series of competitive contracts in the Middle
East with an estimated sales value of $100 million over a three-year
period.

The series of competitive contracts awarded to Covalon includes the
granting of approximately ten categories of products under the Executive
Board of Health Ministers’ Council for Gulf Cooperation Council States
(called “SGH”), as well as several contracts outside of the SGH in Saudi
Arabia and other countries in the region that extend up to three years
to supply Covalon’s highly-regarded IV Clear, ColActive Plus, and
CovaWound products.

The majority of the contracts have been awarded to Covalon through
highly competitive bidding processes that involved the clinical
evaluation of each product. The series of winning contracts extend over
a period of three years and management anticipates delivery of the
products under the contracts to commence by the Company’s fiscal quarter
ended December 31st 2018.

As more information becomes available, Covalon will provide further
updates on the impact of each of these contract wins.

“These contracts transform Covalon into a significant healthcare player
in the vascular access and wound care markets. We anticipate the
contracts to deliver approximately $100 million of revenue to Covalon
over the contractual periods of up to three years and provide Covalon
with a very stable and predictable base of sales on which to continue to
build our market presence internationally.

“We competed against very large and highly-respected medical companies
for these contracts with our flagship products IV Clear, ColActive Plus,
and several products in our CovaWound line. These contracts secure
Covalon’s business in the Middle East and allow us to focus on
introducing new products into the region as we deliver under these
contracts over the next three years.”

Conference Call Scheduled

The Company has scheduled a conference call to be held Tuesday May 8th
at 9:00 a.m. EDT to further discuss this major sales breakthrough. To
participate in the call please dial:

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This news release contains forward-looking statements which reflect
the Company's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar expressions.
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including the difficulty in predicting product approvals, acceptance of
and demands for new products, the impact of the products and pricing
strategies of competitors, delays in developing and launching new
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and other risks, any of which could cause results, performance, or
achievements to differ materially from the results discussed or implied
in the forward-looking statements. Many risks are inherent in the
industry; others are more specific to the Company. Investors should
consult the Company's ongoing quarterly filings for additional
information on risks and uncertainties relating to these forward-looking
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forward-looking statements. The Company assumes no obligation to update
or alter any forward-looking statements whether as a result of new
information, further events or otherwise.